Singapore Pete/Earnings -3: Strong Global Oil Prices

sg.biz.yahoo.com Tuesday January 21, 7:21 PM

  Singapore Petroleum Co (P.SPC) - Singapore
  Full year ended Dec. 31:
  Figures in Singapore dollars (S$).

                              2002               2001

Revenue S$2,435,488,000 S$2,337,298,000 Pretax Profit 52,532,000 2,441,000 Net Profit 48,934,000 (1,201,000) Earnings Per Share Fully Diluted 11.53 cents (0.28 cents) Existing Capital 11.55 cents (0.28 cents) Dividend 4.8525 cents 1.00 cent (US$1=S$1.7360)

Figures in parentheses are losses. Earnings are unaudited.

Singapore Pete/Earnings -3: Strong Global Oil Prices

SINGAPORE (Dow Jones)--Higher global oil prices helped Singapore Petroleum Co. post a strong profit in 2002, reversing losses from a year earlier.

SPC said it also expects to remain profitable in 2003 due to expectations that oil prices will remain high at least for the first quarter.

For 2002, SPC said its net profit was S$48.9 million - its third-highest since it was publicly listed in 1990 - and a sharp turnaround from the $1.2 million net loss a year earlier.

Revenue also improved due to the higher oil prices, rising to S$2.43 billion last year from S$2.33 billion in 2001.

SPC said its average oil price increased to US$26.56 per barrel from US$25.54 per barrel the previous year.

Sales volume remained steady around 50.5 million barrels.

"The strong performance recorded for 2002 has been due to the group's ability to capitalize on the steep rise in crude and oil prices that characterized the oil market in 2002," the company said in a statement.

But the volatile crude and product prices also created volatility in SPC's refining margins last year, which swung from US$0.50 per barrel to above US$2.00 per barrel throughout the year.

Interest expenses were also lower in 2002, falling to S$7.7 million from S$18.3 million a year earlier.

For 2003, SPC said with the global economic outlook remaining uncertain due to the potential for war with Iraq and due to the crisis in Venezuela, further volatility in oil prices is expected.

"With the existing surplus refining capacity in the region and the low demand growth, refining margins will continue to be under pressure," the company said.

However, the company said, through the implementation of strategies to better manage trading and price risks, "the group expects to remain profitable in 2003."

-By Leigh Murray, Dow Jones Newswires; 65 6415 4158; leigh.murray@dowjones.com